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China Vanke joins GLP bidding fray

The Chinese real estate developer has joined a consortium that includes Hopu Investment Management and Hillhouse Capital Group to bid for the Singapore-listed logistics powerhouse.  

China Vanke, one of China’s largest property developers by sales, has joined a consortium led by Hopu Investment Management and Hillhouse Capital Group, to bid for Global Logistic Properties (GLP).

PERE has learned from sources familiar with the deal that China Vanke will be a co-investor along with the two Beijing-based private equity firms in the consortium that is also being backed by Ming Mei, chief executive of GLP. The news was first reported by Reuters.

It is unclear at this point what other investors, if any, are part of this consortium.

China Vanke has been expanding its real estate holdings outside the residential sector in recent years, and logistics is one of its target sectors. As of end 2016, the group had acquired 18 logistics property projects, with an aggregate gross floor area of approximately 1.47 million square metres, according to its website.

According to one source, China Vanke would look to integrate GLP’s portfolio within its logistics platform should the consortium emerge as the final buyer of the $9 billion logistics powerhouse.

A special committee, in charge of evaluating the bids, is currently in the process of accepting firm proposals by the shortlisted bidders until June 30, according to a stock exchange note published in early June. The special committee consists of four independent directors and is chaired by Dr Seek Ngee Huat, chairman of the GLP board.

According to PERE’s earlier reports, Warburg Pincus and Blackstone are also understood to be in the bidding fray.

GLP continues to maintain that no binding proposals have been received and there is no certainty that any definitive transaction would materialize from the strategic review, which began in December when GLP hired JP Morgan following a request received by its largest shareholder GIC.

GLP did not respond to email queries as of press time.